On 8 October 2020, President Mohammadu Buhari presented the 2021 Budget to the National Assembly. The estimate for expenditure is NGN13.082 trillion, while revenue is NGN7.886 trillion. The fiscal deficit is NGN5.196 trillion: an increase of 4% compared to the prior year’s figure. President Buhari also disclosed that the Honorable Minister of Finance, Budget, and…
Further to the tensions of Lagosians on the exorbitant rates for land use charge, the Lagos State Government has issued a reform that will ease the financial burden of residents. The Lagos State Government (LASG) has, therefore, reversed the rates in the Land Use Charge (LUC) to the amount before 2018. However, the 2018 method…
The COVID-19 pandemic has changed the way businesses sustain their operations; likewise, the tax and regulatory authorities. A tax authority may choose from two options in the post COVID-19 economy. Option 1: Maintain status-quo and wait for taxpayers to settle unpaid balances. Option 2: Offer incentives and collect outstanding payments In Nigeria, Lagos state and…
Nigerian President has approved the waiver of Value Added Tax (VAT) and import duty for essential medical equipment and supplies. It takes effect from May 1, 2020, and is valid for an initial period of six months. Items that can be produced locally such as textile face masks, undenatured ethyl alcohol, hydrogen peroxide, hand sanitizers,…
The Federal Inland Revenue Service (FIRS) has announced extra tax concessions in response to COVID-19. Option to pay tax in Naira: Tax is payable in the currency of the transaction. For transactions in foreign currency, taxes will be paid in that same currency. During the lockdown, businesses that cannot get foreign exchange to settle their…
Apart from being the end of Quarter 1 2020, March 2020 was a defining moment in the Nigerian tax system. Tax and regulatory authorities had to issue various concessions due to the COVID-19 pandemic. In case you missed the major tax headlines, here are the top seven (7) events that shaped the Nigeria tax space…
Lagos State Government has released Lagos State Infectious Diseases (Emergency Prevention) Regulations 2020 (the Regulation). The Regulation aims to prevent and lower the spread of COVID-19 in Lagos State. COVID-19, also referred to as Coronavirus, is a Dangerous Infectious Disease under Section 2 of the Quarantine Act Cap Q2 LFN 2004. The Emergency Prevention Regulations…
As at 31 March 2020, Nigeria confirmed 139 cases of coronavirus (COVID-19). The pandemic reduced the level of economic activities in Nigeria within a couple of days. Businesses and individuals providing non-essential goods as well as services were advised to close operations and stay at home. Social distancing, proper hygiene, and self-isolation were safety tips…
President Muhammadu Buhari signed the 2020 Budget into law on 17 December 2019 within two months after the first presentation at the National Assembly. The 2020 Budget shows a total expenditure of ₦10.59 trillion while the total revenue is ₦8.31 trillion creating a deficit of ₦2.18 trillion. Federal Government will allocate more expenditure to provide…
Some provisions in the Nigerian tax laws are outdated and ambiguous. Over the years, Nigerian lawmakers made attempts to amend gray areas in the tax laws but with little impact. One new legislation that will reform the Nigerian tax space is the Finance Bill 2019. The bill seeks to amend seven (7) tax laws in…